This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equity markets are hovering around break-even this morning, taking a little breather from their recent uptrend after US bourses made fresh all-time highs, the UK prepares for a changing of the guard and investors get excited about more monetary and fiscal stimulus to foster economic growth and counter myriad headwinds. Here at home I say no rate cut from the BoE tomorrow (not yet anyway, and here’s why). The bearded-wonder Bernanke visiting old mucker Kuroda at the ‘out-of-ammo’ BoJ also means potential discussions about the merits of last resort ‘helicopter money’ (central bank funded fiscal stimulus) to kick-start an economy that just can’t get out of neutral. Central banks to the rescue, again? With a mix of risk and defensives now driving the UK Index , is appetite gradually shifting back from the high-yielding non-cyclicals after their stellar gains?
The UK 100 is holding a 5-day uptrend after bouncing from 6650. Longer-term bullish patterns still valid. The DAX30 rebounding from 9920 means it could be in the midst of a bullish flag pattern towards 10100. Wall Street/Dow Jones futures are holding around fresh all-time intraday highs 18372. Retrace or further to run? Gold has bounced from $1330 after breaking down at $1350 from a bearish double-top. Back to $1300? Signal for risk-appetite?
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The UK 100 is holding a 5-day uptrend after bouncing from 6650. The longer-term bullish patterns we recently highlighted (3-week bullish flag, 11-month bullish inverse H&S reversal) are still valid.
Watch levels: Bullish 6710, Bearish 6640
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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The DAX30 rebounding off 9920 means it could be in the midst of a bullish flag pattern back to 10000 and on towards 10100.
Watch levels: Bullish 9995, Bearish 9915
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
Wall Street/Dow Jones futures are holding around fresh all-time intraday highs 18372. Retrace or further to run?
Watch levels: Bullish 18360, Bearish 18335
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
Gold has bounced from $1330 after breaking down at $1350 from a bearish double-top. Back to $1300? Signal for risk-appetite?
Watch levels: Bullish $1346, Bearish $1334
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
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